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HomeMy WebLinkAboutSST Principles SST PRINCIPLES A WC's Streamlined Sales Tax (SST) Connnittee recommends adoption of the following principles: -f!J- 1. Negatively Impacted Cities (NICs) agree to drop the sourcing reversion clause in SB 5622. 2. Positively Impacted Cities (PICs) agree to accept the mitigation proposal contained in SB 5622. 3. PIC cities agree to accept supplemental reporting requirements proposed by NIC cities (see attached). 4. Both sides agree the role of the Oversight Connnittee will remain unchanged from that proposed in SB5622 and there will not be an expansion of the powers of the Committee. 5 Both sides agree there needs to be a simple and accessible appeal process for those jurisdictions that disagree with their mitigation allocation. Bill language needs to be developed for this purpose. 6 Both sides agree that the bill needs to clearly reflect that additional sales tax generated from future annexations is excluded for mitigation determination purposes. SB 5908 of2005 has language to this effect which may be satisfactory. 7 Both sides agree to work together toward the goal of producing an SST bill this session that will provide for full mitigation to the NIC's and all of the sourcing gains to the PIC's. Both sides also recognize that the legislative process may render something different than our joint proposal in the end. We are all mmitted to achieving our joint proposal achieving full sourcing gains to the PIC's an mitigation to the NIC's within the reality ofthe legislative process and with the goal of successfully passing a bill during the 2006 session. ~~~ Pam Carter, Council, Tukwila S-~^ 5:J~ ~ ~t:::t1e utchinson, Mayor, Lake Forest Park ack r:; c, Deputy Mayor, Spokane ~~ Mike Martin, Administrator, Kent er, University Place Supplemental Reporting Section 904(1) of Senate bill 5622 provides for businesses to report to the Department of Revenue "additional information" no more often than every six months. This is the "supplemental reporting" requirement in the bill. This information is highly important to be able to quantify the actual amount of losses to be mitigated. This additional information will be nothing more than the total taxable sales by location, basically the same information that they report currently. This requirement is also provided for in the national Streamlined Sales Tax Agreement. We agree with the desire to limit the need for this supplemental reporting and also agree with the desire to eliminate this requirement over time. Our view on how to accomplish this is as follows: We believe that the 600 firms that would need to file supplemental reports as estimated in DOR's fiscal note to bill 5622 may be correct initially. We would propose that only firms that cause significant shifts in sourcing sales within NIC's would need to report. As the local jurisdictions go off mitigation, the requirement for the firms to file supplemental reports for those firms within those jurisdictions would be eliminated. We would propose that this requirement be eliminated after two years so that we can be assured that the jurisdiction does not slip back into a mitigation situation. The result of this system of supplemental reporting will be a gradual reduction of the number of firms required to file supplemental reports annually until taxation of remote sales is authorized nationally. At that time the requirement would be reduced to approximately 10% of the firms originally required to report.